{"id":1004732261,"date":"2024-10-08T03:49:39","date_gmt":"2024-10-08T11:49:39","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004732261"},"modified":"2024-10-16T04:44:21","modified_gmt":"2024-10-16T12:44:21","slug":"nuveen-green-capital-cdpq-roll-out-600m-c-pace-program","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/nuveen-green-capital-cdpq-roll-out-600m-c-pace-program\/","title":{"rendered":"Nuveen, CDPQ Roll Out $600M C-PACE Program"},"content":{"rendered":"
\n
\"Jonathan<\/a>
Jonathan Kloos, senior director of lender partnerships & new products for Nuveen Green Capital, told CPE<\/em> the programmatic pairing of NGC\u2019s C-PACE and CDPQ\u2019s mortgage is the first of its kind. Image courtesy of Nuveen<\/em><\/figcaption><\/figure><\/div>\n\n\n

Global investment group CDPQ and Nuveen Green Capital launched a $600 million integrated sustainable commercial real estate financing program. The initiative combines C-PACE financing with senior bridge and construction loans.<\/p>\n\n\n\n

Jonathan Kloos, senior director of lender partnerships & new products for Nuveen Green Capital, told CPE <\/em>the programmatic pairing of NGC\u2019s C-PACE and CDPQ\u2019s mortgage is the first of its kind.<\/p>\n\n\n\n

\u201cIt brings together dominant players in commercial real estate finance and offers borrowers a lower cost of capital than is otherwise available, combined with seamless execution,” said Kloos. “We anticipate that we will soon be upsizing our partnership.”<\/p>\n\n\n\n

The program drives the adoption of sustainability measures in commercial buildings. It provides a significant source of flexible, committed and discretionary capital for large-scale construction and bridge financings across major asset classes.<\/p>\n\n\n\n

NGC, the parent company of Ivanhoe Cambridge, will act as the primary sourcing agent for the integrated financing program.<\/p>\n\n\n\n

The announcement follows a September announcement by Carlyle that it had committed $1 billion to North Bridge for C-PACE Financing.<\/p>\n\n\n\n

A burgeoning market<\/h2>\n\n\n\n

Demand for Commercial Property Assessed Clean Energy or C-PACE loans is growing quickly. In the 40 states where it is available, owners can secure accretive, long-term financing for energy efficiency, renewable energy, water conservation and climate initiatives\u2014whether for new developments, renovations or post-construction recapitalization projects.<\/p>\n\n\n\n

Other examples of C-PACE’s flexibility are its use with USDA-guaranteed bank loans or historic buildings for restoration\/improvements and seismic and storm-related resilience in some states, according to Bayview PACE.<\/p>\n\n\n\n

<\/p>\n\n\n

\n
\"Anne<\/a>
Anne Hill, Senior Vice President, Bayview PACE. Image courtesy of Bayview PACE<\/em><\/figcaption><\/figure><\/div>\n\n\n

\u201cThe combination financing of C-PACE with traditional financing has gained traction since we began doing it by bringing in financing in-house from Bayview Asset Management affiliates,\u201d Anne Hill, SVP of Bayview PACE, told Commercial Property Executive<\/em>.<\/p>\n\n\n\n

\u201cWe have closed about half a dozen such deals and issued several hundred million dollars of combined term sheets. Two more deals are set to close by the end of the year, where we are providing both pieces,\u201d she added.<\/p>\n\n\n\n

\n\n\n\n

READ ALSO<\/strong>: Why C-PACE Loans Are at a Record High<\/a><\/p>\n\n\n\n

\n\n\n
\n
\"BREEAM's<\/a>
\u201cAs traditional financing options tighten, C-PACE offers property owners a reliable option for securing capital dedicated to sustainability improvements\u2014helping fill capital needs and bridge the funding gap in today\u2019s challenging market,\u201d BREEAM’s U.S. Director of Operations Breana Wheeler, told CPE<\/em>. Image courtesy of BREEAM<\/em><\/figcaption><\/figure><\/div>\n\n\n

According to BREEAM’s U.S. Director of Operations Breana Wheeler, C-PACE offers property owners a reliable option for securing capital dedicated to sustainability improvements, helping fill capital needs and bridge the funding gap in today\u2019s challenging market.<\/p>\n\n\n\n

\u201cNotably, C-PACE is a viable alternative to mezzanine financing at lower rates, offering developers a way to secure long-term, sustainability-focused funding with competitive rates,\u201d she said.<\/p>\n\n\n\n

<\/p>\n\n\n\n

C-PACE is no longer viewed as a tool to give borrowers more leverage and move up the stack, according to Jillian Mariutti, senior director of JLL Capital Markets’ debt and equity financing team.<\/p>\n\n\n\n

\u201cIn this environment, it is being used to reduce the weighted average cost of capital,\u201d she said. \u201cC-PACE is attractive on deals where the senior pricing is 500 basis points to 800 basis points over SOFR, which right now is 10 percent to 13 percent money. C-PACE is roughly 7.5 percent fixed nonrecourse and would bring the blended rate down in those instances.\u201d<\/p>\n\n\n\n

C-PACE financing is available for both new and retroactive projects, and even if the borrower didn\u2019t develop the property, Mariuitti said. Proceeds can even be accessed retroactively within a few years of the development.<\/p>\n\n\n\n

\u201cSenior lenders and rating agencies are becoming more comfortable with C-PACE and more often are allowing it in the capital stack,\u201d she said.<\/p>\n\n\n\n

\n\n\n\n

READ ALSO<\/strong>: C-PACE Is Available in Georgia. What\u2019s Next?<\/a><\/p>\n\n\n\n

\n\n\n\n

<\/p>\n\n\n\n

The early stages are often most challenging<\/h2>\n\n\n\n

According to David Frosh, CEO of Fidelity Bancorp Funding, the early stages of new initiatives are often the most challenging.<\/p>\n\n\n\n

\u201cFrom solar panels to sustainable real estate, these programs frequently struggle with profitability\u2014if they ever reach it,\u201d Frosh said.<\/p>\n\n\n\n

\u201cWe\u2019re now in the difficult yet exciting phase of changing how we develop. For the most part, how we\u2019ve built communities, office spaces and retail hasn\u2019t evolved much in the last hundred years. To attract capital (beyond government investment), projects must be profitable. Unfortunately, many sustainable practices raise short- and long-term costs and this burden often falls on residents or tenants. Developers must stay competitive, or the project will suffer.\u201d<\/p>\n\n\n\n

He added that state and local governments should focus more on redevelopment over new development.<\/p>\n\n\n\n

\u201cMany cities do a better job with this, but we need more,\u201d Frosh said. \u201cRevitalizing our cities depends on this. Applying innovative solutions to environmentally challenged properties could have a greater impact than many current initiatives.\u201d<\/p>\n\n\n\n

\u201cAs a lender, I don\u2019t find these projects less desirable. Lending is based on property value and the risk tied to cash flows. If a redevelopment can be leased profitably and competitively, it\u2019s as attractive as any other project,\u201d Frosh concluded.<\/p>\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

This initiative combines green financing with senior bridge and construction loans.<\/p>\n","protected":false},"author":3568,"featured_media":1004585713,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21825,23891,21742,21786],"tags":[52312,33565,52351],"class_list":["post-1004732261","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","category-national","category-latest","category-sustainability","tag-bayview-pace","tag-ivanhoe-cambridge","tag-nuveen-green-capital"],"acf":[],"yoast_head":"\nNuveen, CDPQ Roll Out $600M C-PACE Program - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Global investment group CDPQ and Nuveen Green Capital launched a $600 million integrated sustainable commercial real estate financing program.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/nuveen-green-capital-cdpq-roll-out-600m-c-pace-program\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nuveen, CDPQ Roll Out $600M C-PACE Program\" \/>\n<meta property=\"og:description\" content=\"Global investment group CDPQ and Nuveen Green Capital launched a $600 million integrated sustainable commercial real estate financing program.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/nuveen-green-capital-cdpq-roll-out-600m-c-pace-program\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2024-10-08T11:49:39+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-10-16T12:44:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2022\/06\/Breana-Wheeler-headshot-Oct-2021-small-2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Richard Berger\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/nuveen-green-capital-cdpq-roll-out-600m-c-pace-program\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/nuveen-green-capital-cdpq-roll-out-600m-c-pace-program\/\",\"name\":\"Nuveen, CDPQ Roll Out $600M C-PACE Program - 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